08 March 2012 23:55 [Source: ICIS news]
HOUSTON (ICIS)--TPC Group saw its 2011 fourth-quarter net loss jump to $18.4m from $700,000 in the same period a year ago as a result of contract price falls, the US-based butadiene (BD) producer said on Thursday.
Revenues increased to $574.8m in the quarter from $486.1m in the same period of 2010, but the cost of sales increased by a greater amount, from $426.9m to $542.9m.
The company said soft fourth-quarter demand for BD caused contract prices to fall by 42% from September to December last year.
“After the abrupt softening in demand for butadiene in the fourth quarter, we are now seeing signs that the markets are coming back into balance,” chief executive Mike McDonnell said.
“We anticipate further tightness in crude C4 and butadiene supply due to the unusually large number of ethylene crackers that are planned to be down in the first half of the year.
“As a consequence, butadiene prices have risen 49% between December and March.”
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